The European Commission is expected to present, on 24 June, an Omnibus Package proposal to simplify the rules on direct taxation.

This initiative is not intended to create new taxes, but rather to simplify, improve and clarify existing EU tax rules. The review will cover, among others, the Interest and Royalties Directive, the tax regime applicable to mergers and divisions, the regime applicable to dividends distributed between companies in the same group, and the regime to combat tax avoidance.

At present, the measures introduced under the anti-tax avoidance package, which were based on a set of OECD recommendations, have created overlapping rules and obligations, as well as divergent national rules, resulting in increased costs for companies in complying with their tax obligations.

One of the objectives set out in the European Commission’s Political Guidelines for the 2024–2029 mandate is to reduce administrative burdens by at least 25% for all companies and by 35% for SMEs.

This initiative could represent an opportunity, particularly for SMEs and start-ups, to reduce the costs associated with complying with tax obligations and to increase legal certainty in the planning of cross-border operations, through the alignment of tax rules across Member States.

Our team is available to provide any further information.